Which Savings Account Will Earn You The Least Money?

Definition of "Which savings account will earn you the least money?"

Isabel Arango real estate agent

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Isabel Arangoelite badge icon

MC Homes Realty, Inc

When it comes to saving money, it's important to consider the different options available. This way you can maximize your earnings. Have you ever thought of how to open a savings account? Or maybe opening a savings account affects your credit score? Not all savings accounts are created equal. Some savings accounts will earn you more money and offer attractive interest rates and enticing benefits. Others may provide lower returns on your investment. We will explore various types of savings accounts and shed light on which ones are likely to yield the least amount of money.

Basic savings accounts

If you ever wondered how savings accounts work, know that traditional banks often offer them. These types of accounts are designed for individuals looking for a safe place to store their money without the need for significant growth. These accounts offer minimal interest rates, often hovering around 0.01% to 0.10% per annum. While they provide a secure place to keep your funds, they offer little earning potential. The low-interest rates on basic savings accounts make them the least profitable option. If you seek to grow your savings over time, this is not the best option available. These accounts have limited functionalities. They provide a simple repository for your funds. These accounts are not offering additional perks. We talk here about rewards programs, cashback options, or access to financial planning services. The absence of these value-added features diminishes the attractiveness of basic savings accounts.

Checking accounts with savings features

What is the difference between a checking and a savings account? Some banks offer checking accounts with savings features. This way they allow you to earn a small amount of interest on your checking account balance. But, how does interest work on a savings account?  These accounts often have lower interest rates compared to dedicated savings accounts. They provide the convenience of both a checking and savings account in one. The interest rates tend to be modest, ranging from 0.05% to 0.15%. If you want to accumulate wealth and maximize returns, these accounts may not be the most lucrative option.

Money market accounts

Money market accounts are a popular choice. If you are seeking a middle ground between checking and savings accounts, this is your option. These accounts offer higher interest rates compared to basic savings accounts. They may include extra benefits such as check-writing privileges and ATM access. But, even with these added features, money market accounts tend to have lower interest rates compared to other investment options. Interest rates for money market accounts can vary. They generally range from 0.15% to 0.50%, depending on the institution and market conditions.

Certificates of deposit (CDs)

Certificates of Deposit (CDs) are fixed-term savings accounts. Here you deposit a specific amount of money for a predetermined period, ranging from a few months to several years. While CDs are considered a safe and low-risk investment option, they often yield lower returns than other investment avenues. The interest rates on CDs are usually fixed, and the longer the term, the higher the interest rate tends to be. However, even with longer-term CDs, the interest rates are generally lower compared to alternative investment vehicles. For example, a 5-year CD might offer an interest rate of around 0.50% to 1.00%.


When it comes to choosing a savings account, the advantages and disadvantages are numerous. That’s why it's crucial to consider your financial goals and priorities. Some accounts offer higher interest rates and the potential for greater returns. Others may provide minimal earnings on your deposits. Basic savings accounts and checking accounts with savings features are likely to offer the least amount of money due to their low-interest rates. Money market accounts, and CDs may offer slightly higher rates, but they still tend to provide lower returns compared to more investment-focused options. Therefore, it's essential to assess your financial objectives and explore alternative investment strategies if you aim to maximize your savings over time.

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